Shale Directories LLC and the Canton Ohio Regional Chamber of Commerce presented the Utica Upstream Seminar on Wednesday, April 6th at the Pro Football Hall of Fame in Canton, Ohio.
The seminar was very informative and received very favorable comments from the attendees. The seminar featured speakers that were experts in the field as well as representatives from drillers in the Utica.
Some of the highlights of the seminar are:
Maria Cortez, Upstream Analyst, Wood Mackenzie
- Breakeven for the Marcellus drillers is $2
- Breakeven for the Utica drillers is $3.
- When the price of oil is in the $50-$60 range, it will help Utica NGLs
- The REX (Rockies Express Pipeline) and Rover may not have enough production capacity.
- The Nexus Pipeline may be delayed.
- Marcellus has 15 rigs drilling in the wet gas area and 8 rigs in the dry gas area. In the Utica, there are 3 rigs in the wet gas area and 7 rigs in the dry area.
Callum Streeter, Chief Operating Officer, EdgeMarc
- EdgeMarc is operating 1 rig and it just moved it to Monroe County, OH
- Formed in 2012 Operate as EM Energy OH & EM Energy PA, based in Canonsburg, PA
- Strong Balance Sheet – No Debt
- Privately Owned – $750MM capital committed
- Principal Funders: Funds Managed by Goldman Sachs and Ontario Teachers’ Pension Fund
- Marcellus and Utica Exposure — 50,000+ net acres ~500-800 Drilling location
- Business Strategy & Highlights — Appalachia has superior shale economics
- Marcellus, Utica and Devonian plays have ~ 500 Tcfe of resource-significant ongoing drilling activity
- The Appalachian basin has the lowest cost F&D gas in North America High Quality Assets
- 25,000 ac. of well proven & extremely developable Marcellus and U. Devonian position in Butler County
- 12,000 ac. of highly delineated assets in Monroe County confirming extremely favorable Utica potential
- 16,000 ac. of core Utica Wet play extending to Southern Ohio toward Washington County
- Drilled 52 wells in Butler County demonstrating best-in-class finding and development costs
- EdgeMarc’s Moonraker well is experiencing extremely robust results re-affirming peer group data and industry faith in Utica dry gas potential in Monroe county
- EdgeMarc’s Merlin Well production confirms wet Utica potential in Washington County
- Midstream and FT Strategy
- Strategic partnerships with key midstream providers in place
- Firm Transportation acquired accessing highly liquid hubs with maximum netbacks
- Future natural gas liquid volumes have lucrative Asian market exposure
- EdgeMarc Asset Overview
- Butler County PA
- 25,443 acres
- 52 wells drilled; 22 completed
- Resource Potential 6-9 TCFE
- F&D Cost ($/Mcfe)
- $0.30-$0.45
- Washington County, OH
- 16,117 acres
- 1 well drilled; 1 completed
- Resource 1-2 TCFE
- F&D Cost ($/Mcfe)
- $0.45-$0.55
- Monroe County, OH
- 12,196 acres
- Wells drilled 4; wells completed 1
- Resource 2-3 TCFE
- F&D Cost ($Mcfe)
- $0.40-$0.50
- Butler County PA
Dr. Iryna Lendel
When asked about the prospect of more Asian chemical companies building cracker plants in the Utica once the PTT cracker plant is being built, Dr. Lendel commented “JobsOhio is speaking with companies in Japan about investing in the Utica.”
Joseph Barone
www.ShaleDirectories.com